URGENT Notice for All Businesses Regarding the MA Unemployment Insurance Solvency Fund
The ERC5 has been working closely with the Unemployment Insurance experts, Unemployment Tax Control Associates (UTCA), to alert our members, the business community in general, and our Legislators of the 1,600% increase to the Commonwealth’s Unemployment Insurance Solvency Fund. This deficit in the Solvency fund was not based on an employer’s claim experience but rather the payments generated by the Commonwealth’s response to the COVID-19 pandemic. Our actions in mid-April contributed to the Department of Unemployment Assistance (DUA) announcement on 4/16/21 of an extension of the Q1 contributions for private contributory employers until June 1, 2021.
This action was welcomed but represents only a delay. The problem has not been resolved. We believe it may be prudent to consider requesting an extension to the June 1, 2021 payment deadline to avoid a situation where our legislators push through an inadequate or poorly structured response, leveraging a looming deadline date. The June 1st date is less than one month away and it can be utilized to force employers in to a “take it or leave it” scenario. Given the serious cost implications and losses to the business community associated with the Solvency crisis, our State leadership MUST get this right. Jobs and our competitive advantage will be sacrificed to a timeline dynamic.
Attached is an update from UTCA which outlines how the problem can be resolved. On 5/11/21, the US Department of Treasury clarified that American Rescue Plan (ARP) funds can be used to “replenish unemployment insurance (UI) trust funds”. This is wonderful news to the business community. ARP funds can also be used for other purposes, so it is essential we contact our Legislators now to let them know the funds should go to offset the UI deficit and relieve businesses of this unintended burden. The funds are set to be disbursed very soon so please make the call to your Legislators, Gov. Baker and key influences as soon as possible. You can access the contact information for all MA State Senators by clicking HERE. You can access the contact information for all MA State Representatives by clicking HERE.
When calling feel free to use the following script. “Hi, my name is ________, I am a business owner in __________ and I am calling to ask for an extension of the June 1st, quarter one Unemployment Insurance (UI) contribution payment deadline to permit enough time for this issue to be resolved properly.”
Please share this with any other business contacts in Massachusetts and ask them to act on this important matter.
Additional questions should be directed to UTCAInc.com or ERC5.com.